Argentina's Sal de Oro Phase II Lithium Carbonate Plant Commences Production with Annual Capacity of 23,000 Tonnes

en.Wedoany.com Reported - On October 6, POSCO Argentina held an inauguration ceremony for the Phase II plant of its Sal de Oro project located at the Hombre Muerto Salt Flat in Argentina. The plant is designed to produce approximately 23,000 tonnes of lithium carbonate per year, with all output destined for export. Under the project plan, commercial operation will gradually ramp up production starting in 2027 until design capacity is reached. The project is located in the border area between Salta Province and Catamarca Province.

Sal de Oro Phase II uses the salt flat brine route to produce lithium carbonate. According to the approval document from Argentina's Ministry of Economy, the project uses solar evaporation ponds to concentrate brine and applies chemical treatment with calcium oxide or quicklime to ultimately produce lithium carbonate. The Phase II project has been incorporated into Argentina's Large Investment Incentive Regime (RIGI), with Posco Argentina SAU SDE as the project entity, and a RIGI registration date of June 12, 2026. Under the approval conditions, the project must complete the corresponding eligible asset investment within the specified period, with the minimum investment compliance deadline set at July 31, 2029.

Sal de Oro currently comprises two lithium salt production facilities. Phase I is a lithium hydroxide plant with an annual capacity of approximately 25,000 tonnes; Phase II adds approximately 23,000 tonnes of lithium carbonate capacity. Once both facilities are fully operational, the combined annual lithium product capacity will be approximately 48,000 tonnes. IDB Invest has signed a financing arrangement of up to US$700 million with POSCO, with funds earmarked for the startup, operation, and gradual production ramp-up of both plants, including the production ramp-up of the Phase II lithium carbonate facility.

Sal de Oro Phase II also includes import arrangements for equipment and materials under RIGI. Argentina's Ministry of Economy has approved the list of goods eligible for import preferences under the project, and the mining authorities are responsible for subsequent oversight of the project investment plan and related regulatory conditions. After the Phase II plant begins operation, the 23,000-tonne lithium carbonate capacity will be gradually released in accordance with the 2027 ramp-up plan.

During the inauguration ceremony on October 6, POSCO also signed memoranda of understanding with Salta Province and Catamarca Province for the development of Sal de Oro Phase III and Phase IV. The goal of the subsequent phases is to expand Sal de Oro's annual lithium product output to 100,000 tonnes. The specific capacity configuration, construction timeline, and product mix for Phase III and Phase IV will be determined in subsequent development plans.